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Convenant not to sue

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Casablanca

Junior Member
What is the name of your state? Florida

I am being sued by a lady who loaned me money to help my company move from my home into a store front. Her check was made payable to my company. The store front never opened due to my partner took everything out of the store before the grand opening and was not seen again, also she never paid the lease. I found her this year and I'm currently in the middle of a lawsuit with the partner. Everyones moneys are included in the lawsuit as well. But this lady says I will never get my money back from the partner so she is suing me for her portion back. I have a indemnification agreement and covenant not to sue effective same day as my SS4 & 2553.

Q. When she filed the lawsuit it reads my name dba my company
Doesnt she have to sue my company only? or does DBA mean she's suing me & my company? Hopefully I said that right!

Thanks for your help,
CasablancaWhat is the name of your state? Florida
 


outonbail

Senior Member
What is the name of your state? Florida

I am being sued by a lady who loaned me money to help my company move from my home into a store front. Her check was made payable to my company. The store front never opened due to my partner took everything out of the store before the grand opening and was not seen again, also she never paid the lease. I found her this year and I'm currently in the middle of a lawsuit with the partner. Everyones moneys are included in the lawsuit as well. But this lady says I will never get my money back from the partner so she is suing me for her portion back. I have a indemnification agreement and covenant not to sue effective same day as my SS4 & 2553.

Q. When she filed the lawsuit it reads my name dba my company
Doesnt she have to sue my company only? or does DBA mean she's suing me & my company? Hopefully I said that right!

Thanks for your help,
CasablancaWhat is the name of your state? Florida
DBA stands for "Doing Business As".
Was your company a sole proprietor, a partnership or a corporation? Who's name appeared on the fictitious business form you filed in the county your business was operating in? Who was listed as the owner(s) on the company bank account?

If you were not operating as a corporation, then by suing you, she is suing the company since you are the company, just operating under a fictitious name.

It's not like the business becomes a living breathing entity that she can pull into court and sue. How exactly would the business reply to this legal issue, if you weren't included in her law suit?

Was the business incorporated?
 

dcatz

Senior Member
Outonbail's questions are should be getting you thinking in the right direction, but I’m not sure that they move you far enough along.
You refer to your “partner” taking everything.
1) Was this business a partnership? If so, did the partnership register a fictitious business name (a “dba”)? If so, the plaintiff can sue you as “John Doe dba Acme Sales”. She will have unnecessarily omitted your partner, but she can reach your assets and partnership assets with a judgment.
2) Was the business a sole proprietorship with a registered dba? If so, she can sue you and, with a judgment, she can reach your assets and that probably includes assets in the name of the dba –like a bank account – depending on how those assets are held.
3) Was the business a corporation? Depending on the laws of your state, she may or may not be able to reach your assets with a judgment. We don’t have enough information. You say “the store never opened”. In some states, mine included, if a corporation is properly authorized to do business, she could reach corporate assets, but not yours. Conversely, if the corporation is not authorized (eg. because it didn’t complete authorization or was later suspended), the principals are regarded as operating as a sole proprietorship – eg. "John Doe dba Acme Sales, Inc.” and she could reach your assets with a judgment.
So pick the one that applies to your situation. The fourth possibility is that none of the above is applicable, and the plaintiff just designated her defendant incorrectly.
And where does the indemnification and covenant not to sue come into the picture? Sue who/what?
You have to clarify your terminology and references before you can get more useful information.
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P.S. Given that there has been an effort to try to give you some answers here, please delete the duplicate post.
 
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